Consolidated Financial Results
for the Six Months Ended June 30, 2023
[Japanese GAAP]
August 10, 2023

Company name: JAC Recruitment Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Code number: 2124
URL: https://corp.jac-recruitment.jp
Representative: Hiromi Tazaki, Co-Founder, Chairman, CEO and Managing Director
Inquiries: Toshihiko Okino, Director, Head of Administration and CFO
Phone: +81-3-5259-6926
Scheduled date of filing quarterly securities report: August 10, 2023
Scheduled date of commencing dividend payments: Availability of supplementary briefing material on quarterly financial results: Available(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Six Months Ended June 30, 2023 (January 1, 2023 to June 30, 2023)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)

Net Sales
Six months ended
June 30, 2023
June 30, 2022

million yen

17,24914,825(Note) Comprehensive income:Operating Income% million yen

16.3
24.0

% million yen

4,163
3,911

Profit Attributable to
Owners of Parent

Ordinary Income

6.4
18.6

% million yen

4,165
3,925

6.1
19.0

Six months ended June 30, 2023: ¥3,155 million [8.5%]
Six months ended June 30, 2022: ¥2,907 million [28.5%]

Earnings Per ShareSix months ended
June 30, 2023
June 30, 2022

3,020
2,731

%

10.6
24.0

Diluted Earnings
Per Share

yen

yen

75.49
67.66

–
–

(Note) Diluted earnings per share are not presented as there were no dilutive shares.
(2) Consolidated Financial Position

As ofJune 30, 2023
December 31, 2022

(Reference) Equity:

Total Assets

Net Assets

million yen

Equity Ratio

million yen

20,24422,084%

14,26015,58570.4
70.6

As of June 30, 2023: ¥14,260 million
As of December 31, 2022: ¥15,585 million

2. Dividends

1stQuarter-end
Fiscal year ended December 31, 2022
Fiscal year ending December 31, 2023
Fiscal year ending December 31, 2023
(Forecast)yen

Annual Dividends
2nd
3rd
Year-end
Quarter-end
Quarter-end
yen

–
–

0.00
0.00

(Note) Revision to the forecast for dividends announced most recently: None

-1-

yen

yen

Total
yen

–

80.00

80.00

–

85.00

85.00

3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2023 (January 1, 2023 to
December 31, 2023)(% indicates changes from the previous corresponding period.)

Net Sales
million yen%

Operating Income

Ordinary Income

million yen

million yen%%

Full year
36,651
20.4
7,770
10.3
7,783 10.4
(Note) Revision to the financial results forecast announced most recently: None

Profit Attributable to
Owners of Parent
million yen
5,417

%
7.7

Earnings
Per Shareyen
133.88*Notes:(1) Changes in significant subsidiaries during the six months ended June 30, 2023 (changes in specified subsidiaries
resulting in changes in scope of consolidation): None
New: –
Excluded: –(2)

Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: Yes(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
As of June 30, 2023: 41,389,300 shares
As of December 31, 2022: 41,289,300 shares2) Total number of treasury shares at the end of the period:
As of June 30, 2023: 1,506,836 shares
As of December 31, 2022: 1,005,871 shares
3) Average number of shares during the period:
Six months ended June 30, 2023: 40,005,964 shares
Six months ended June 30, 2022: 40,370,360 shares*These quarterly financial results are outside the scope of quarterly review by a certified public accountant or an audit
firm.
*Disclaimer Regarding the Use of the Financial Results Forecast and Other Special Notes
The financial results forecast and other forward-looking statements in this document are based on information
currently available and certain assumptions the Company deems to be reasonable. Actual results may differ significantly
from these forecasts due to a variety of factors. For the assumptions used for the financial results forecasts and the notes
regarding the use thereof, please refer to “(3) Explanation of Consolidated Financial Results Forecast and Other
Forward-looking Information” on page 4 of the attachment.

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Table of Contents - Attachments
1. Qualitative Information on Quarterly Financial Results ........................................................................ 2(1) Explanation of Operating Results ...................................................................................................... 2(2) Explanation of Financial Position ...................................................................................................... 3(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information .. 4
2. Quarterly Consolidated Financial Statements and Principal Notes ...................................................... 5(1) Quarterly Consolidated Balance Sheets ........................................................................................... 5(2) Quarterly Consolidated Statements of Income and Comprehensive Income ................................... 7(3) Notes to Quarterly Consolidated Financial Statements .................................................................... 9(Notes on going concern assumption) ............................................................................................... 9(Notes in case of significant changes in shareholders’ equity) ........................................................... 9(Accounting methods adopted particularly for the preparation of quarterly consolidated financial
statements) ........................................................................................................................................ 9(Segment information, etc.) ............................................................................................................ 10-1-

1. Qualitative Information on Quarterly Financial Results(1) Explanation of Operating Results
During the six months ended June 30, 2023, corporate activities in Japan were steadily normalized after theJapanese Government downgraded the legal status of COVID-19 to “Class 5” from “Class 2” in May. The Bankof Japan’s Tankan Survey released in June indicated that business sentiment among large manufacturing
companies improved for the first time in seven quarters. Meanwhile, the overseas economic outlook mainly inEurope and the United States remained uncertain, and the business sentiment fell among the sectors such as
production machinery, which was particularly affected by the uncertainty.
Even under these circumstances, in Japan, companies with a focus on the regrowth of their businesses
actively hired employees for securing diverse human capital based on their human capital management, and thejobs-to-applicants ratio remained robust. U.S.-based IT and consulting companies and some leading Japanese IT
companies continued to refrain from hiring employees since last autumn. The Domestic Recruitment Business,
the Group’s core operations, was among those affected by this trend, and in the period under review, it recordedslightly lower net sales for the Group overall than what was planned at the beginning of the period, despite
continued double-digit growth of 16.3% year on year.
In the Domestic Recruitment Business in the first half of the fiscal year ending December 31, 2023, thenumber of the core clients, for which we made over 20 successful placements were robust with a growth of 60%
year on year, owing to Account Management efforts (management of major client companies in an organizedway), which we have been implementing as part of our priority measures. Furthermore, in the business related to
executive and local markets, segments that we are reinforcing, we made solid progress with a 20% year-on-year
growth in the contract amount. In the fiscal second half, we will further promote these priority measures andachieve solid business performance in strong segments. We also intend to boost the productivity of the entire
business by working to optimize focal job offers as well as allocation of consultants in charge and improveorganizational management even further, while paying close attention to changes in hiring needs at U.S.-based
IT and consulting companies and some leading Japanese IT companies. To improve the education provided basedon the “JAC Standard” that we have been working on since the previous fiscal year as what all consultants of theGroup must achieve, we formulated “Mission & Duty” that defines the roles of managers and are actively
introducing it in Japanese and English across the entire Group. We plan to launch the training sessions for
managers based on the program in September. Through this initiative, we are working to strengthen ourorganizational capabilities, further improve the productivity and reduce the turnover rate. We have acquired
consultant staffs in line with what was planned at the beginning of the period and will continue increasing thenumber of consultants as planned.
Regarding the Overseas Business, we have seen a continued slump in Hong Kong (the Hong Kong Special
Administrative Region), but we achieved a solid growth at the offices in Europe, India and Los Angeles in the
U.S., a city where we opened an office this year. As a result, net sales recovered to the level in 2019, when
COVID-19 was yet to spread. We will shift to a highly profitable earnings structure by reviewing the cost structure
including personnel expenses.
As for the Domestic Job Offer Advertising Business, both net sales and profit decreased year on year due
to the prolonged reduction in hiring by some foreign companies which are the main customers for this businesssegment. In the future, we aim to recover earnings by increasing contact points with existing client companies
and focusing our sales efforts on companies highly motivated to hire bilingual human resources, including
Japanese companies.
While selling, general and administrative expenses have been in line with what was planned at the
beginning of the period, since we are seeking cost reduction as well as promoting the business process
reengineering (BPR) for the core information systems, operational processes, etc. based on the results of theanalysis of the current situations conducted in 2022.
As a result, for the six months ended June 30, 2023, net sales reached ¥17,249 million (up 16.3% year onyear). By segment, the Domestic Recruitment Business, the Domestic Job Offer Advertising Business, and theOverseas Business had net sales of ¥15,230 million (up 15.9% year on year), ¥154 million (down 10.3% year onyear), and ¥1,863 million (up 23.0% year on year), respectively.
In terms of profit, operating income was ¥4,163 million (up 6.4% year on year), ordinary income was¥4,165 million (up 6.1% year on year), and profit attributable to owners of parent was ¥3,020 million (up 10.6%
year on year). By segment, the Domestic Recruitment Business posted ¥4,096 million in profit (up 6.2% year onyear). The Domestic Job Offer Advertising Business posted ¥8 million in profit (down 31.6% year on year), andthe Overseas Business posted ¥60 million in profit (up 114.3% year on year).
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The following is the sales performance by segment for the six months ended June 30, 2023:
Segment
Net sales (Million yen)
Year-on-year comparison (%)
Domestic Recruitment Business

15,230115.9

Domestic Job Offer Advertising
Business

154

89.7

1,863

123.0

17,249116.3

Overseas Business
Total(Note) Intersegment transactions were eliminated.

The following is the sales performance by segment and industry
Segment/industry
Net sales (Million yen)

Year-on-year comparison (%)

1. Domestic Recruitment BusinessElectrical, machinery, chemical

5,346

122.5

Consumer goods, services

3,165

117.1

Medical, healthcare

2,340

111.9

IT, telecom

2,174

96.2

Consulting

1,373

145.3

Financial services

766

117.4

Other

63

52.6

15,230

115.9

154

89.7

1,863

123.0

17,249116.3

Domestic Recruitment Business Total
2. Domestic Job Offer Advertising
Business
Domestic Job Offer Advertising
Business Total
3. Overseas Business
Overseas Business Total
Total(Note) Intersegment transactions were eliminated.

(2) Explanation of Financial Position
Total assets at the end of the second quarter ended June 30, 2023 decreased by ¥1,839 million from the end of theprevious fiscal year to ¥20,244 million. Cash and deposits decreased by ¥1,807 million as a result of dividend
payments and purchase of treasury shares, and “other” in current assets decreased by ¥159 million due to adecrease in advances paid, even though prepaid expenses increased by ¥183 million.
Liabilities decreased by ¥515 million from the end of the previous fiscal year to ¥5,983 million. Accounts
payable - other decreased by ¥161 million, accrued expenses decreased by ¥131 million, and accrued
consumption taxes decreased by ¥130 million.
Net assets decreased by ¥1,324 million from the end of the previous fiscal year to ¥14,260 million, and theequity ratio came out to be 70.4%. The Company posted profit attributable to owners of parent of ¥3,020 million,
but paid dividends of surplus totaling ¥3,278 million, and treasury shares increased by ¥1,201 million.

-3-(3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information
Regarding the consolidated financial results forecast for the fiscal year ending December 31, 2023, there is nochange from the consolidated financial results forecast released on May 15, 2023.

-4-

2. Quarterly Consolidated Financial Statements and Principal Notes(1) Quarterly Consolidated Balance Sheets(Million yen)
As of December 31, 2022

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Supplies
Prepaid expenses
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Software
Software in progress
Total intangible assets
Investments and other assets
Investment securities
Investments in capital
Lease and guarantee deposits
Claims provable in bankruptcy, claims provablein rehabilitation and other
Long-term prepaid expenses
Deferred tax assets
Long-term accounts receivable - other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-5-

As of June 30, 2023

14,879
2,244
7
413
283
(7)
17,82013,071
2,254
2
596
123
(24)
16,024

421
(220)
201
66
(35)
30
0
(0)
–
383
(237)
145
4
(2)
2
0
401
(36)
364
745

474
(228)
245
66
(40)
25
0
(0)
–
415
(260)
155
4
(2)
1
1
439
(56)
383
813

814
617
100
1,532

781
606
131
1,518

0
0
969

0
0
935

13

10

27
988
2
(16)
1,985
4,263
22,084

24
927
0
(11)
1,887
4,220
20,244

(Million yen)
As of December 31, 2022
Liabilities
Current liabilities
Lease obligations
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Deposits received
Unearned revenue
Provision for bonuses
Provision for stocks payment
Refund liabilities
Other
Total current liabilities
Non-current liabilities
Lease obligations
Deferred tax liabilities
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets-6-

As of June 30, 2023

0
590
2,995
1,207
659
242
93
–
170
74
128
6,161

0
428
2,863
1,188
529
237
50
23
108
83
193
5,709

1
–
335
337
6,498

1
5
268
274
5,983

672
1,514
15,022(1,793)
15,415672
1,514
14,764(2,994)
13,956169
169
15,58522,084304
304
14,26020,244

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
Six Months Ended June 30

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Remuneration for directors (and other officers)
Salaries and allowances
Legal welfare expenses
Retirement benefit expenses
Provision for bonuses
Provision for bonuses for directors (and other officers)
Provision for share awards
Provision of allowance for doubtful accounts
Rent expenses on land and buildings
Depreciation
Amortization of goodwill
Advertising expenses
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Gain on cancellation of leases
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on cancellation of rental contracts
Other
Total non-operating expenses
Ordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment losses
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to owners of parent

For the six months ended
June 30, 2022
14,825
1,146
13,679-7-(Million yen)
For the six months ended
June 30, 2023
17,2491,340
15,909

362
5,501
701
180
49
13
88
0
565
215
56
642
1,389
9,767
3,911

361
6,524
838
228
23
–
106
14
641
257
58
886
1,804
11,745
4,163

1
–
20
22

4
16
7
29

8
–
0
9
3,925

11
13
1
26
4,165

1
26
28
3,897
1,178
(12)
1,166
2,731
2,731

1
–
1
4,164
1,075
68
1,144
3,020
3,020

Quarterly Consolidated Statements of Comprehensive Income
Six Months Ended June 30

ProfitOther comprehensive income
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

For the six months ended
June 30, 2022
2,731(Million yen)
For the six months ended
June 30, 2023
3,020

176
176
2,907

135
135
3,155

2,907

3,155

–

–

-8-

(3) Notes to Quarterly Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Notes in case of significant changes in shareholders’ equity)
In accordance with the resolution of the Board of Directors meeting held on February 20, 2023, theCompany purchased 600,000 treasury shares. As a result, treasury shares increased by ¥1,368 million
during the six months ended June 30, 2023, standing at ¥2,994 million as of the end of the period.
(Accounting methods adopted particularly for the preparation of quarterly consolidated financial
statements)
The Company calculates the tax expenses of some of its subsidiaries in the quarterly consolidated
financial statements by reasonably estimating the effective tax rate after applying tax effect accounting
to profit before income taxes for the fiscal year that includes the second quarter ended June 30, 2023,
and by multiplying the profit before income taxes by the estimated effective tax rate.

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(Segment information, etc.)[Segment information]
For the six months ended June 30, 2022 (from January 1, 2022 to June 30, 2022)
1. Information on net sales and profit (loss) by reportable segment, and information on disaggregation of revenue(Million yen)
Reportable segment
Domestic
Recruitment
Business

Domestic Job
Offer
Advertising
Business

12,906

94

231

Segment total

Adjustment

1,076

14,077–

14,077

77

438

748

–

748

13,138172

1,514

14,825–

14,825

13,138172

1,514

14,825–

14,825

10

9

10

30

(30)

–

13,149181

1,525

14,856(30)

14,825

3,857

12

28

3,897

–

3,897

Overseas
Business

Total

Net sales
Goods transferred at a point
in timeGoods transferred overtime
Revenue from contracts
with customers
Net sales to outside
customers
Intersegment net sales ortransfers
Total
Segment profit(Notes) 1. Segment profit is consistent with the profit before income taxes in the quarterly consolidated statements ofincome.
2. The figures for the Domestic Recruitment Business reportable segment and the Overseas Business reportablesegment include amortization of goodwill of ¥37 million and ¥19 million, respectively.

2. Information on impairment losses on non-current assets and goodwill by reportable segment(Significant impairment losses on non-current assets)
The Overseas Business reportable segment posted impairment losses of ¥26 million for the six months ended
June 30, 2022.

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For the six months ended June 30, 2023 (from January 1, 2023 to June 30, 2023)
Information on net sales and profit (loss) by reportable segment, and information on disaggregation of revenue(Million yen)
Reportable segment
Domestic
Recruitment
Business

Domestic Job
Offer
Advertising
Business

14,933100297

Segment total

Adjustment

1,343

16,377–

16,377

54

520

872

–

872

15,230154

1,863

17,249–17,24915,230154

1,863

17,249–17,249

4

10

7

23

(23)

–

15,235165

1,871

17,272(23)

17,249

4,096

8

60

4,164

–

4,164

Overseas
Business

Total

Net sales
Goods transferred at a point
in timeGoods transferred overtime
Revenue from contracts
with customers
Net sales to outside
customers
Intersegment net sales ortransfers
Total
Segment profit(Notes) 1. Segment profit is consistent with the profit before income taxes in the quarterly consolidated statements ofincome.
2. The figures for the Domestic Recruitment Business reportable segment and the Overseas Business reportablesegment include amortization of goodwill of ¥37 million and ¥21 million, respectively.

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